What Do DPI, TVPI, and IRR Actually Tell Me About My Fund? You open a quarterly fund report and immediately see a handful of performance metrics. The headline IRR looks impressive. TVPI appears strong. The fund manager seems optimistic about portfolio growth. At first glance, everything looks positive. But then a simple question comes to […]
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Should My Startup Take Venture Debt Instead of Raising More Equity? You just completed a financing round. The new capital is in the bank, investors are supportive, and the company has a plan for the next stage of growth. Then a venture debt lender reaches out. The pitch sounds attractive. You can access additional capital
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Should I Lend My Startup Money or Put It In as Equity? Your startup needs cash. Maybe payroll is approaching, and revenue has not arrived yet. Maybe a customer payment is delayed. Perhaps you need a few more months of runway before closing an investment round. Like many founders, you decide to fund the company
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How Do I Actually Read My Own Fully Diluted Cap Table? A founder tells investors they own 50% of the company. The number comes directly from the cap table, so it seems accurate. Then the financing process begins. An investor reviews the capitalization table, runs a few calculations, and comes back with a much lower
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Does My Fund Need an Anti-Money-Laundering Program in 2026? You hear that new anti-money-laundering requirements are coming for investment advisers. Your compliance team starts discussing policies. Your outside counsel mentions suspicious activity reporting. Someone tells you that your fund needs a formal AML program by January 1, 2026. Naturally, the next question is whether you
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Do I Have to Withhold US Tax When I Pay Foreign Contractors or Investors? Your startup hires a contractor in another country. Or perhaps you make a distribution to a foreign investor. From your perspective, it feels like a straightforward payment. The invoice arrives, the wire goes out, and the transaction is complete. Unfortunately, that
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Can I Remove My Fund’s Manager? How Key Person and No-Fault Clauses Work You invested in a fund because you believed in a particular team. The fund manager had a strong track record, a clear strategy, and relationships that appeared difficult to replicate. A few years later, things changed. A founding partner leaves. Key personnel
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Can I Pay Myself a Salary Before My Startup Makes Money? You are working full-time on your startup. The hours are long, the pressure is constant, and your personal savings are shrinking. At some point, every founder asks the same question: Can I actually pay myself? Many founders feel guilty about taking a salary before
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Can I Be Held Personally Liable for My Startup’s Debts? One of the main reasons founders form an LLC or corporation is to separate business risk from personal risk. The expectation is simple. If the company fails, creditors can pursue company assets but not the founder’s house, savings account, or personal investments. In most cases,
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Which Decisions Need Board, Stockholder, or Investor Approval at My Startup? In the early days of a startup, decision-making is simple. The founders discuss an issue, make a choice, and move forward. That changes after outside investors come in. A financing round introduces new governance requirements, new approval rights, and new stakeholders who may have
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Who Counts as a Major Investor in My Term Sheet, and Why Should I Care? You are reviewing a term sheet and come across a phrase that looks harmless: “Major Investor.” It appears to be little more than a definition. Most founders skim past it. That can be a mistake. The major investor threshold often
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Which New State Privacy Laws Does My Startup Have to Follow in 2026? You have customers across the United States. Your startup is not based in California. You do not consider yourself a data broker. You are focused on product development, customer acquisition, and growth. Privacy compliance feels like someone else’s problem. That assumption is
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What Is a Management Rights Letter and Why Does My VC Insist on One? You are preparing to close a financing round. The term sheet is signed. The investment documents are nearly complete. The wire transfer is ready to go. Then one of your investors sends over a document called a Management Rights Letter (MRL).
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What Are Registration Rights and What Do They Force My Company to Do? You signed an Investors’ Rights Agreement during a financing round several years ago. At the time, most of the discussion focused on valuation, board seats, liquidation preferences, and dilution. Registration rights received very little attention. They felt like provisions that might matter
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What Am I Really Paying in Management Fees Over the Life of a Venture Fund? You review a venture fund’s offering documents and see the familiar phrase: “2 and 20.” The 20 percent carry gets your attention immediately. It sounds significant, so you spend time evaluating whether the General Partner (GP) deserves that level of
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Should My Startup Switch From Stock Options to RSUs as We Scale? In the early days of a startup, stock options are usually an easy decision. The company’s valuation is low. Strike prices are low. Employees see meaningful upside if the company succeeds. Founders can offer equity packages that feel exciting without creating immediate tax
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Should I Reincorporate My Startup Out of Delaware in 2026? You keep seeing the headlines. Major companies are talking about leaving Delaware. Commentators are debating whether Texas or Nevada offers better alternatives. Social media is filled with discussions about “DExit,” the growing conversation around companies considering a move away from Delaware incorporation. Naturally, founders start
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Should I Make Investors Sign an NDA Before I Pitch My Startup? You have spent months building your startup. The product is taking shape, customer conversations are promising, and you are finally ready to start meeting investors. Before sending your deck, a question comes to mind: Should investors sign an NDA first? For many founders,
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Should I File a Provisional Patent Before I Show My Startup’s Technology? Your product is almost ready. A conference demo is coming up. Investor meetings are scheduled. A product launch announcement is drafted and waiting to go live. Everything feels aligned. Then someone asks a simple question: “Have you filed a patent application yet?” Many
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Do I Owe Taxes in Every State Where My Remote Employees Live? You raised a financing round, the team is growing, and you are hiring talented people wherever they happen to live. The arrangement seems straightforward. Your company is incorporated in Delaware. Your headquarters are in one state. Payroll is running smoothly through a modern
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